Australia

These tax rates and thresholds were produced as an information service and without assuming duty of care. This information is based on our interpretation of relevant superannuation and taxation laws as at 1 July 2021.
William Buck is an association of firms, each trading under the name of William Buck across Australia and New Zealand with affiliated offices worldwide.

Lodgment and Payment dates

Tax Return Lodgment and Payment Dates

Taxpayer 2021 Tax Return (30 June Year End)
Lodgment date Payment date
All taxpayers
All entities with one or more outstanding tax returns as at 30 June 2021(1). 31 October 2021 1 December 2021
(companies/super funds) 

Other entities as notified

Companies/Superannuation Funds/Trusts
Large/Medium taxpayers(3) whose prior year tax return was taxable. 15 January 2022 1 December 2021
(companies/super funds)  

No earlier than 15 February 2022
(trusts)

– Large/Medium taxpayers(3) whose prior year return was
non-taxable– New registrants: New registrant Large/Medium taxpayers(3),
SMSF, head companies of consolidated groups

– Subsidary members that have exited the consolidated group in
the year

 

28 February 2022

28 February 2022
(companies/super funds)  

No earlier than 21 March 2022 (trusts)

Companies and superannuation funds with total income in excess of $2M (per latest return lodged) not otherwise Large/Medium taxpayers(3)

Trusts with a tax liability of $20,000 or more (per latest return lodged) not otherwise Large/Medium taxpayers(3).
31 March 2022 31 March 2021
(companies/super funds) 

 No earlier than 21 April 2022 (trusts)

Remaining companies, superannuation funds and trusts. 15 May 2022 15 May 2022
Individuals
Individuals with a tax liability of $20,000 or more (per latest tax return). 31 March 2022 No earlier than 21 April 2022
Remaining Individuals 15 May 2022 Various based on lodgment date (earliest 21 March 2022)

(1) If all overdue prior year tax returns are lodged prior to 31 October 2021, the lodgment due date for the 2021 tax return will be due according to the normal lodgment program.

(2) Includes consolidated groups and MEC groups.

(3) Large/Medium taxpayers include:
– Trusts and Companies that have annual total income of more than $10M members of a large business group, and public companies;        and
– Superannuation funds with income of more than $10M, or investments of more than $50M or non-complying superannuation funds.
– Includes head companies of consolidated groups or MEC groups with an annual total income greater than $10 million.

Corporate Tax

Corporate Tax Rates – 2020/21 & 2021/22

Current year Base rate entity(1) Other companies
2020/21 26% 30%
2021/22 25% 30%

(1)   The definition of “base rate entity” limits the ability to access the lower corporate tax rate to companies with no more than 80%
passive
income, and aggregated turnover of less than $50m.

Franking Rates – 2020/21 & 2021/22

Income year dividend paid Prior year turnover Rate for franking purposes
2020/2021 Less than $50m 26%
$50m or more 30%
2021/2022 Less than $50m 25%
$50m or more 30%

Motor Vehicle Depreciation Cost Limit

Year

Depreciation Limit

2020/2021 $59,136
2021/2022 $60,733

Business Taxpayers - Depreciation Limits for Business Assets

Turnover Eligibility Restrictions Deduction
12 March 2020 to 31 December 2020 (General Small Business Pool)
Less than $10m aggregated turnover Cost ≥ $150,000. Balance of the pool at the end of an income year ending between 6 October 2020 and 30 June 2022 is written off 15% first year
30% thereafter
12 March 2020 to 31 December 2020 (Instant Asset Write-off Incentive)
Less than $500m aggregated turnover Cost < $150,000. Must start using
the asset, or have the asset stalled ready for use, by 30 June 2021.
Immediate
12 March 2020 to 30 June 2021 (Backing Business Investment Incentive)
Less than $500m aggregated turnover New assets only. No cost limit. Cannot be applied to assets to which the Instant Asset Write-Off Incentive was applied 50% of cost
Less than $10m aggregated turnover

Cost ≥ $150,000

Not eligible for temp full expensing incentive

57.5% of cost
7:30pm (AEDT) 6 October 2020 to 30 June 2023 (Temporary Full Expensing)
Less than $50m aggregated turnover No cost restriction Immediate
Less than $5B aggregated turnover No cost restriction
Must be a new asset
Immediate

Interest Rates

Year Division 7A benchmark interest rate Unpaid present entitlement and
sub-trust prescribed interest rate
7-year loan 10-year loan
2020/21 4.52% 4.52% 6.57%
2021/22 4.52% 4.52% 6.51%

Fringe Benefits Tax (FBT)

FBT Rates – Year ending 31 March 2022
FBT rate

47%

FBT benchmark interest rate 4.52%
 

FBT gross-up rates

Type 1 benefits 2.0802
Type 2 benefits 1.8868
Car park benefit threshold (per day) $9.25
Motor vehicle statutory formula percentage(1) 20%

(1) Contracts entered into before 7:30pm (AEST) on 10 May 2021 may be subject to a different rate

Superannuation

Superannuation Balance Caps - 2020/21 & 2021/22

2020/21 2021/22
Transfer Balance Cap (TBC)(1) (3) $1.6m $1.7m
Total Superannuation Balance (TSB) Cap(2) $1.6m $1.7m

(1) TBC limits the total amount an individual can transfer into Retirement Phase.

(2) TSB is relevant for determining eligibility to make certain superannuation contributions. TSB typically measured as at 30 June of the prior financial year.

(3) From 1 July 2021, each individual must calculate their own personal TBC which will be between $1.6m and $1.7m. 

Superannuation Contributions Caps - 2020/21 & 2021/22

Age 2020/21 2021/22 Contributions tax
Concessional contributions
All ages $25,000(1) $27,500)(1)

15% tax on contributions within cap.

Tax on excess
Individual’s marginal tax rate.(4)

Division 293
Further 15% tax if individual’s income (adjusted by Div 293) is over $250,000.

Non-concessional contributions(2)
Under 67 $100,000
(or $300,000
over 3 years)(3)
$110,000
(or $330,000
over 3 years)(3)

Tax on excess  – option 1
Release excess and 85% of associated earnings. All associated earnings taxed at individual’s marginal tax rate.

Tax on excess – option 2
Individual’s top marginal tax rate on entire excess non-concessional contributions

(1)   From 1 July 2018, unused concessional contributions caps can be carried forward up to five years if the TSB is less than $500,000 in the previous year.

(2)   The ability to make non-concessional contributions may be limited by the member’s account balance and its proximity to the TSB.

(3)   An individual under 67 may be eligible to make non-concessional contributions of up to three times the annual cap in a single year.

(4)   An excess concessional contributions charge also applies up to 30 June 2021.

Age Restrictions on Superannuation Contributions

Age

Acceptance of contributions

Under 65 No restrictions apply. Downsizer contributions cannot be accepted.(1)
65 to 66 No restrictions apply. Downsizer contributions can be accepted.(1)
67 to 74 Individuals must satisfy the work test.(2)(3)
75 and over(4) Mandated employer and Downsizer contributions only.

(1) An eligible individual aged 65 or over can use the proceeds from the sale of their main residence to make Downsizer contributions of up to $300,000.

(2) An individual who fails the work test but has TSB of less than $300,000 may still be eligible to contribute if the work test was satisfied in the previous year.

(3) Gainfully employed for 40 hours over 30 consecutive days during the year.

(4) Contributions can be made up to 28 days after the end of the month in which the individual turns 75.

Preservation age

Date of birth Preservation age
Before 1 July 1960 55
1 July 1960 to 30 June 1961 56
1 July 1961 to 30 June 1962 57
1 July 1962 to 30 June 1963 58
1 July 1963 to 30 June 1964 59
From 1 July 1964 60

Minimum Account-Based Pension Factors

Age at pension commencement (and 1 July of each year)

Pension factor
(2020/21 and 2021/22)(1)

Under 65 2%
65 – 74 2.5%
75 – 79 3%
80 – 84 3.5%
85 – 89 4.5%
90 – 94 5.5%
95 and over 7%

(1)  Factors temporarily reduced by 50% due to the economic impact of COVID-19.

Taxation of Superannuation Benefits

Superannuation income streams – element taxed(1) in fund

Age at 1 July Tax implications
Under preservation age Assessable at marginal rates.

No tax offset available.

15% tax offset.(1)

At or above preservation age
(but under 60)
Assessable at marginal rates.

15% tax offset.

60 and over Non-assessable, non-exempt income.

Superannuation lump sums

Age at lump sum date Tax rate(3)
Taxable – taxed(1) Tax free
Under preservation age 20% Nil
At or above preservation age (but under 60) Within cap – Nil

Excess above cap – 15%

Nil
60 and over Nil Nil

Superannuation death benefits

Beneficiary Tax rate(3)
Taxable – taxed Tax free
Tax dependant Nil Nil
Non-tax dependant Taxed – maximum of 15% (plus Medicare levy)

Untaxed – maximum of 30% (plus Medicare levy)

Nil

(1) Non-government superannuation payments will typically be ‘taxed’. Constitutionally protected superannuation funds are untaxed
and
not covered in this tax summary.

(2) Low Rate Cap is a lifetime cap – $215,000 in 2020/21; $225,000 in 2021/22.

(3) Rates exclude Medicare Levy.

Superannuation Guarantee

Year Rate Maximum quarterly super contribution base
2020/21 9.5% $57,090
2021/22 10% $58,920

Capital Gains Tax (CGT) Cap

2020/21 2021/22
CGT cap amount $1,565,000 $1,615,000
Retirement exemption limit(1) $500,000 $500,000

(1)   Lifetime limit.

Individual Tax

Personal Tax Rates - 2020/21 & 2021/22

Personal Tax Rates 

Taxable income Residents Working Holiday Makers
Tax % on excess Taxable income Tax % on excess
$18,200 Nil 19 Nil Nil 15
$45,000 $5,092 32.5 $45,000 $6,750 32.5
$120,000 $29,467 37 $120,000 $31,125 37
$180,000 $51,667 45 $180,000 $53,325 45

(1) You are a working holiday maker if you have a visa subclass: 417 (Working Holiday), 462 (Work and holiday) or a bridging visa in limited circumstances.

Personal Tax Rates (Non-Residents)

Non-Residents
Taxable income Tax % on excess
Nil Nil 32.5
$120,000 $39,000 37
$180,000 $62,100 45

Low and Middle Income Tax Offset & Low Income Tax Offset - 2020/21 & 2021/22

Taxable income Low and Middle Income Tax Offset
$37,000 or less $255
$37,001 to $48,000 $255 + 7.5% of the amount of income that is greater than $37,000, to the maximum offset of $1,080
$48,001 to $90,000 $1,080
$90,001 to $126,000 $1,080 less 3% of the excess above $90,000

 

Taxable income Low Income Tax Offset
$37,000 or less $700
$37,501 to $45,000 $700 minus 5 cents for every dollar over $37,500
$45,001 to $66,667 $325 minus 1.5 cents for ever dollar over $45,000

Home Office Deductions – 2020/21 & 2021/22

Date applicable Method Amount / hour(1)
1 July 2018 onward Fixed Rate 52c
1 March 2020 to 30 June 2021 Covid shortcut(1)(2)(3) 80c

(1)   You must keep records of the number of hours worked from home.

(2)   This method covers all work from home expenses including phone, internet, electricity etc. If using this method, no other expenses for working from home can be claimed.

(3)   Include “Covid-hourly rate” as the description when completing the tax return.

Medicare Levy – 2021/22

Medicare levy of 2% applies to residents whose taxable income exceed the upper limit.

Type of taxpayer Lower limit(1) Upper limit(1)
Individuals $23,226 $29,032
Families(2) $39,167 $48,958
Threshold increase per dependent child/student $3,597 $4,496
Individuals eligible for Senior and Pensioner Tax Offset $36,705 $45,881

(1)   A phase-in of 10 cents per $1 applies above the lower limit.

(2)   Applies to families where there are no children and/or students.

Medicare Levy Surcharge and Private Health Insurance Rebate

Type of taxpayer Not affected Tier 1 Tier 2 Tier 3

Income levels (1) – 2020/21 & 2021/22

Singles $90,000 or less $90,001 – $105,000 $105,001 – $140,000 $140,001 or more
Families(2) $180,000 or less $180,001 – $210,000 $210,001 – $280,000 $280,001 or more

Private health insurance rebate from 1 Jul 2020 to 31 Mar 2021(3)

Aged under 65 25.059% 16.706% 8.352% 0%
Aged 65 – 69 29.236% 20.883% 12.529% 0%
Aged 70 or over 33.413% 25.059% 16.706% 0%

Private health insurance rebate from 1 April 2021 to 30 Jun 2021(3)

Aged under 65 24.608% 16.405% 8.202% 0%
Aged 65 – 69 28.710% 20.507% 12.303% 0%
Aged 70 or over 32.812% 24.608% 16.405% 0%

Medicare Levy Surcharge Rate(4)

All ages 0% 1% 1.25% 1.5%

(1)   Income for surcharge purposes is the sum of taxable income, reportable fringe benefits, reportable superannuation contributions, net investment losses less certain superannuation lump sums.

(2)   Family income level threshold is increased by $1,500 for each dependent child after the first.

(3)   The government did not change the rebate percentage on 1 April 2021.

(4)   Taxpayers with insufficient private health cover are liable for the Medicare levy surcharge on their taxable income.

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